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2. Calabrese Corporation manufactures and sells a special kind of ball bearing. Its cost structure depends on the number of bearings it produces. Its fixed costs and variable manufacturing cost per unit for different ranges of production are described in the following table: Calabrese's sales director believes the company can sell 2,800 units at a selling price of $370; or 3,800 units at a price of $270; or 6,800 units at a price of $195. If it chose to sell 6,800 units, however, it would incur additional advertising costs of $68,000 and variable selling costs of $10 per unit. Should Calabrese Corporation plan to produce and sell (a) 2,800 units (b) 3,800 units or (c) 6,800 units? 2. Calabrese Corporation manufactures and sells a special kind of ball bearing. Its cost structure depends on the number of bearings it produces. Its fixed costs and variable manufacturing cost per unit for different ranges of production are described in the following table: Calabrese's sales director believes the company can sell 2,800 units at a selling price of $370; or 3,800 units at a price of $270; or 6,800 units at a price of $195. If it chose to sell 6,800 units, however, it would incur additional advertising costs of $68,000 and variable selling costs of $10 per unit. Should Calabrese Corporation plan to produce and sell (a) 2,800 units (b) 3,800 units or (c) 6,800 units

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